Evaluates the yield of a security that pays periodic interest.

settlement—The date on which payment is made to settle a trade. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User’s Guide.

maturity—The date on which the bond comes due, and principal and accrued interest are paid. For a more detailed discussion on dates see Chapter 8, Working with Date/Time Data in the PV‑WAVE User’s Guide.

coupon_rate—Annual coupon rate.

price—Price per $100 face value of the security.

redemption—Redemption value per $100 face value of the security.

frequency—Frequency of the interest payments. It should be 1, 2, or 4.

basis—The method for computing the number of days between two dates. It should be 0, 1, 2, 3, or 4.

result—The yield of a security that pays interest periodically. If no result can be computed, NaN is returned.

Double—If present and nonzero, double precision is used.

Xguess—If present, the value is used as the initial guess at the internal rate of return.

Highest—If present, the value is used as the maximum value of the internal rate of return allowed.

Function YIELD_PERIODIC computes the yield of a security that pays periodic interest. If there is one coupon period use the following:

In the equation above, DSR represents the number of days in the period starting with the settlement date and ending with the redemption date. E represents the number of days within the coupon period. A represents the number of days in the period starting with the beginning of coupon period and ending with the settlement date.

If there is more than one coupon period use the following:

In the equation above, DSC represents the number of days in the period from the settlement to the next coupon date. E represents the number of days within the coupon period. N represents the number of coupons payable in the period starting with the settlement date and ending with the redemption date. A represents the number of days in the period starting with the beginning of the coupon period and ending with the settlement date.

In this example, YIELD_PERIODIC computes yield of a security which is selling at $95.40663 with the settlement date of July 1, 1985, the maturity date of July 1, 1995, and the coupon rate of 6% at the issue using the US (NASD) 30/360 day count method.

settlement = VAR_TO_DT(2000, 7, 1)

maturity = VAR_TO_DT(2010, 7, 1)

coupon_rate = .06

price = 95.40663

redemption = 105.

frequency = 2

basis = 1

PRINT, YIELD_PERIODIC(settlement, maturity, coupon_rate, $

   price, redemption, frequency, basis)

; PV-WAVE prints: 0.0700047